SEBI’s Clampdown on LS Industries: Unmasking a Stock Manipulation Saga
SEBI extends the trading ban on LS Industries, its promoter, and associates amid a probe into alleged stock manipulation and fraudulent activities. The investigation aims to uncover the suspicious spike in share prices despite poor financial records, directing involved parties to comply with investigative efforts.
- Country:
- India
In a decisive move, SEBI has barred LS Industries, its promoter, and four associates from the securities markets pending an investigation into alleged stock price manipulation and fraudulent practices. The watchdog aims to complete its probe by November 15, necessitating full cooperation from the implicated parties.
Allegations surfaced earlier this year that LS Industries engaged in dubious activities, resulting in an unexplained surge in share prices despite negligible revenues from FY22 to FY24. SEBI's interim orders, issued in February 2025, sought to ascertain the validity of these claims and froze asset gains.
The investigation has garnered attention due to the staggering increase in LSIL shares from Rs 22.50 to Rs 267.50, raising the company's market capitalisation to Rs 22,700 crore. The movement is suspected to be part of a broader manipulative scheme targeting unwary investors.
(With inputs from agencies.)
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